Every investor in Amaero International Ltd (ASX:3DA) should be aware of the most powerful shareholder groups.Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Amaero International is not a large company by global standards. It has a market capitalization of AU$41m, which means it wouldn't have the attention of many institutional investors.Taking a look at our data on the ownership groups (below), it seems thatinstitutional investors have bought into the company.Let's take a closer look to see what the different types of shareholders can tell us about Amaero International.
What Does The Institutional Ownership Tell Us About Amaero International?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Amaero International.This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does.It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Amaero International, (below). Of course, keep in mind that there are other factors to consider, too.
ASX:3DA Earnings and Revenue Growth August 3rd 2022
Hedge funds don't have many shares in Amaero International.The company's largest shareholder is Pegasus Growth Capital, with ownership of 9.7%.With 8.6% and 7.9% of the shares outstanding respectively, Rosewood Engineering Pty Ltd and Innovyz Investments Pty Ltd are the second and third largest shareholders.
A deeper look at our ownership data shows that the top 24 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing.There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Amaero International
The definition of an insider can differ slightly between different countries, but members of the board of directors always count.The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Shareholders would probably be interested to learn that insiders own shares in Amaero International Ltd.As individuals, the insiders collectively own AU$2.7m worth of the AU$41m company.This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public -- including retail investors -- own 50% of Amaero International.This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Private Equity Ownership
Private equity firms hold a 9.7% stake in Amaero International. This suggests they can be influential in key policy decisions.Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Private Company Ownership
We can see that Private Companies own 22%, of the shares on issue.Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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